By Prof Ireen Choga

It is believed that export-led growth is an important component of export diversification and poses a major challenge for many developing countries. Exports in sub-Saharan countries are heavily dependent on primary commodities, in contrast to other regions such as East Asia, North America and Europe, whose exports are dominated by manufactured products. Therefore, the theme of this lecture is to discuss the key determinants of exports and export diversification and how export diversification enhances economic growth in sub-Saharan Africa. A review of literature was done to assess the determinants of exports and export diversification. Findings have shown that the major determinants of export diversification are trade openness, real effective exchange rate, human capital, per capita income, investment, foreign direct investment, infrastructure and population. However, the determinants vary according to the country under study and the methodology used. Findings also revealed that export diversification has a positive effect on economic growth, especially in developing countries. In addition, most studies have shown the negative effect of export instability on economic growth. It is recommended that countries should diversify their export baskets to improve economic growth and to ensure export stability.

By Prof Gisele Mah

According to the World Data Bank (2023), compared to other countries around the world, most European countries do have the highest debt-to-GDP ratio, while their interest payment (% of expense) is the lowest. The opposite applies to African countries. South Africa's debt is associated with the budget deficit and its debt is mostly domestic. The measures used the most for debt reduction are restructuring, default, inflation, economic growth, financial repression and fiscal consolidation. Although South Africa’s public debt was at 71,1% in 2022 (South African Reserve Bank, 2023), many studies show that the debt is sustainable and is within the accepted debt threshold level. Whether debt is good or bad in South Africa or any other country depends on how it is managed, the purpose for which it is used, and the overall economic context. Prudent use of debt for productive investments, combined with responsible debt management practices and fiscal policies, is essential to achieve sustainable economic growth and development. My position is that sovereign debt is good for a country when it is sustainable, within an acceptable debt threshold, well managed, and used for development projects.

By Prof Mark Rathbone

Contemporary business ethics contain an embedded disjunction between economics and ethics that can be traced back to the Enlightenment. To gain perspective on this disjunction and the implications for the future of business ethics, an investigation into the genealogy of the relationship between economics and ethics is important to provide future direction. A genealogy of business ethics in this article refers to a critical historical investigation of the relationship between economics and ethics to ascertain the foundational developments of business ethics as the praxis of business and an academic field of study. This relationship from Plato and Aristotle to the Enlightenment and post-Enlightenment has been a foundational assumption of business. With the rise of neoliberalism, which revived ideas of the Enlightenment and Das Adam Smith Problem in various fields of study in the twentieth century, the relationship has become strained, even hostile, representing an exclusive disjunctive. However, the revival of Smithian research later in the 20th century by business ethicists and Smithian scholars reveals that the disjunction in Smith’s work is not exclusionary (as presented by neoliberals) but functions as a connective within the tension between economics and ethics. This type of inclusive disjunction points out that The Theory of Moral Sentiments (1759) does not oppose Smith’s economics represented in An inquiry of the nature and causes of the wealth of nations (1776), but that his economics are embedded in ethics. In other words, from a Smithian point of view, business is embedded in a socio-ethical system that directs business and that has important implications for business ethics, organisation management, business analysis and pedagogy, among other things.